Suckert Company manufactures lacrosse sticks. The companys capacity is 4,500 sticks per month; however, it currently sells

Question:

Suckert Company manufactures lacrosse sticks. The company’s capacity is 4,500 sticks per month; however, it currently sells only 3,000 sticks per month. Long Meadow Sports has offered to buy 700 lacrosse sticks for $50 each from Suckert. Normally, the company sells its sticks for $65. Suckert’s accounting records report the cost of each stick to be $40, including fixed costs of $20 each.

Required
If Suckert were to accept Long Meadow’s offer, what would be the impact on Suckert’s income?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

Question Posted: